14 February 2023

A word from the President

The year 2023 has undeniably got off to a strong start for CFA Montreal, and I'm delighted to report that it has.

On January 26, our 2023 outlookThe sold-out event, attended by Margaret Franklin, CFA, President and CEO of the CFA Institute, and more than 500 financial professionals, generated considerable interest in the Montreal community. The event also generated considerable media coverage for the Association.

Given the global context we've been navigating for the past few months, this year's edition was a special one, and the curiosity surrounding the forecasts of guest experts Jimmy Jean, CFA (Mouvement Desjardins) and Jean Boivin (BlackRock Investment Institute) was certainly palpable.

It has to be said that 2022 has been a challenging year:

The whole world has felt the impact of the pandemic;
Inflation is rampant and pressure on households is high;
The challenges of an ageing population, which have been predicted for decades, are now well underway, including labour shortages and pressures on healthcare systems;
Climate change is a pressing issue, but concrete solutions are slow to materialize, exacerbating inflation;
Stock markets and bonds plummeted, the worst scenario in 100 years for 60/40 portfolios;
What can we say about the geopolitical situation and the instability currently reigning in the world... The ongoing war in Ukraine is having a major impact on Europe and all other countries. Political and commercial alliances are being disrupted. We are in the midst of an energy crisis, etc.

Life has changed a lot in the last year. It's no exaggeration to say that the world order has been turned upside down, and that our financial markets are feeling the pinch. Once again, our speakers have enlightened us on the global and Canadian economic outlook.

Jean Boivin said: "Central banks won't be able to use easing measures for a long time. Forget rate cuts for a long time!"

Jimmy Jean, for his part, said: "It's important to remember that the low, stable inflation of recent decades has been an exception in history, not the norm. Even if central banks managed to bring inflation back to their 2% targets soon, it probably wouldn't be the end of the story. With the climate transition, demographic changes and the impact of geopolitical tensions, we're more likely to enter a regime of high inflation volatility. This argues for higher interest rates than we've been used to in the previous cycle."

The observations of these two high-calibre Quebec economists, widely echoed by the media present at the event, will have been invaluable at the start of this new year. And for our part, we're delighted to have seen so many of you there after such a long absence!

Event photos 2023 outlook